Memory prices crash, but auto companies are still holding on

Price rout hits commodity memory

It has been reported that contract prices for DRAM and NAND flash have plunged in recent months, driven by a mix of weak consumer-electronics demand, inventory destocking and an oversupply from foundries expanding capacity. Major suppliers such as Samsung Electronics (三星电子), SK Hynix (SK海力士) and Micron (美光科技) are feeling the squeeze, while China's domestic players like Yangtze Memory Technologies (长江存储) continue to try to scale production under difficult conditions. The result is a sharp, industry-wide drop in spot and contract prices for commodity memory components.

Automakers keep faith with long-term deals

So why aren't carmakers rushing to buy the cheap chips? Automakers — including China's large groups such as BYD (比亚迪), SAIC (上汽集团) and Geely (吉利) — have reportedly kept purchasing behavior conservative: they remain on long-term supply agreements, hold certified automotive-grade inventories and avoid rapid supplier swaps because qualification cycles for safety-critical systems are long and costly. In other words, the auto segment is insulated from the immediate swings of the commodity memory market; cheap commodity prices don't translate into instant replacement of automotive-grade parts.

Geopolitics and what comes next

There is a geopolitical overlay. US export controls and trade policy have pushed China to develop local memory supply chains, but scaling advanced manufacturing remains hard and expensive. The memory-price slump amplifies financial pressure on global suppliers while offering potential relief to downstream buyers — eventually. For now, automakers are playing it safe, and the timing of any benefits from lower prices depends on how quickly qualified, automotive-grade components can be sourced and certified.